Cessnock backs federal funding shake-up Newcastle councils oppose
Cessnock councillors will vote on backing a federal funding shift that favours growing councils.
Cessnock is pushing for the NSW Local Government Grants Commission's new method of distributing federal grants. The council argues the method better reflects pressures on high-growth councils.
Cessnock's population is forecast to surge 66 per cent by 2041, from about 64,600 to 107,375. The growth is driven by development at Huntlee, Bellbird North, Kurri Kurri and the planned Anambah to Branxton growth area.
The new allocation method shifts 30 per cent of grants per head of population and 70 per cent based on financial need. The split pits Cessnock and Dungog against larger coastal councils: Newcastle, Lake Macquarie, Central Coast and MidCoast.
Together those councils estimate they would lose 41.6 million dollars a year. That's almost half a billion dollars over a decade as money redirects to councils deemed less able to afford higher rates.
Newcastle alone stands to lose at least 9.4 million dollars annually.
- $41.6 million
- Annual loss for four larger councils
- At least $9.4 million
- Newcastle's annual loss
- Almost half a billion dollars
- Decade loss for larger councils
Why it mattersFederal grant cuts force councils to raise rates or cut services, directly affecting ratepayers and community spending.
AustraliaNSW residents in Newcastle and Lake Macquarie face potential rate rises and service cuts if funding is redistributed; rural councils could gain resources.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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